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R113011 City Council Meeting: October 27, 2020 Santa Monica, California RESOLUTION NUMBER 11301 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING CREDIT CARD AND DEBIT CARD COVENIENCE FEES WHEREAS, the City has previously authorized the use of credit cards and debit cards to pay for City services, administrative citations, utilities, parking citations, recreation activities, and other transactions (collectively, “Credit Card Payments”); and WHEREAS, the City uses several merchant processing vendors to process Credit Card Payments; and WHEREAS, there are certain transactional costs associated with Credit Card Payments; and WHEREAS, the transactional costs associated with Credit Card Payments vary depending on the vendor, payment amount, payment purpose, and other factors; and WHEREAS, pursuant to Government Code section 6159(h), the City may impose charges for the transactional costs associated with the Credit Card Payments (“Convenience Fees”); and WHEREAS, pursuant to Government Code section 6159(h), the City may impose Convenience Fees as long as the charges do not exceed the costs incurred by the City in providing for Credit Card Payments; and DocuSign Envelope ID: 0DF6BE52-0574-4739-9D7A-461AA3E14831 2 WHEREAS, the proposed Convenience Fees are at or below the City’s actual costs in providing for Credit Card Payments; and WHEREAS, the proposed Convenience Fees are designed to pass the merchant processing fees that the City would otherwise incur to the payor; and WHEREAS, the proposed Convenience Fees will not be retained by the City; and WHEREAS, as a result of statewide and county public health orders in response to the COVID-19 pandemic, the number of Credit Card Payments has increased for non- parking-related payments; and WHEREAS, the proposed Convenience Fees are consistent with the City’s policy of full cost recovery for the costs of business as reflected in the FY 2019-2021 Adopted Budget; and WHEREAS, the City incurs certain transactional costs by accepting payment by electronic check (“E-check Payments”); and WHEREAS, the City will continue to absorb the transactional costs for E-check Payments to provide residents and customers with an alternative electronic payment method without incurring any Convenience Fees; and WHEREAS, the City will continue to absorb the transactional costs for parking- related Credit Card Payments (other than parking citations); and WHEREAS, in accordance with Government Code section 66018, the City Council called a public hearing for October 27, 2020, for the purpose of receiving public comments to the proposed Convenience Fees, and notice of the public hearing was given by publication in a newspaper of general circulation within the City once a week for two DocuSign Envelope ID: 0DF6BE52-0574-4739-9D7A-461AA3E14831 3 weeks commencing at least 10 days prior to the public hearing, with at least 5 days intervening between the first and last publication; and WHEREAS, on October 27, 2020, at the time and place set for the public hearing, the City Council heard and considered all oral and written presentations and comments made regarding the proposed Convenience Fees; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AND PROCLAIM AS FOLLOWS: SECTION 1. The City Council called a public hearing on October 27, 2020 for the purpose of receiving public comments to the proposed Convenience Fees. Notice of the public hearing was given by publication in a newspaper of general circulation within the City once a week for two weeks commencing at least 10 days prior to the public hearing, with at least 5 days intervening between the first and last publication. SECTION 2. Pursuant to Government Code section 6159(h)(1), the City Council approves Convenience Fees for Credit Card Payments as set forth below: Description Vendor Fee Unit Administrative Citations DataTicket $3.50 per transaction Utilities Paymentus $2.95 per transaction Parking Citations Conduent $1.00 per transaction Recreation Activities ActiveNet 2.95% percentage of the transaction Mobility/Transportation Demand CityGrows 2.95% percentage of the transaction All Other Non-Parking-Related Payments Paymentus 2.95% percentage of the transaction DocuSign Envelope ID: 0DF6BE52-0574-4739-9D7A-461AA3E14831 4 SECTION 3.The City Council finds and determines that the Convenience Fees approved above do not exceed the actual transactional costs incurred by the City in providing for Credit Card Payments. SECTION 4. The City Manager and Director of Finance are hereby authorized to take all actions necessary to implement and collect the Convenience Fees. SECTION 5. If any section, subsection, clause or phrase in this resolution is for any reason held invalid, the validity of the remainder of this resolution shall not be affected thereby. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrase thereof be held invalid. SECTION 6.The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 0DF6BE52-0574-4739-9D7A-461AA3E14831 Adopted and approved this 27th day of October 2020. __________________________ Kevin McKeown, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11301 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 27th day of October 2020, by the following vote: AYES: Councilmembers Davis, Himmelrich, Jara, McCowan, Winterer, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 0DF6BE52-0574-4739-9D7A-461AA3E14831